Six of the best: The funds you should have held in 2016
While Brexit and Trump dominated the headlines, the funds which delivered the best returns in 2016 told a different narrative.
While Brexit and Trump dominated the headlines, the funds which delivered the best returns in 2016 told a different narrative.
Oil prices and Russia’s fiscal health are highly correlated, and if prices finally stabilise, the market should benefit, according to Egor Kiselev, who manages two Parvest Russia funds.
The MSCI Russia Index has been positive for 18 months while Russia-focused mutual funds have stayed negative.
The importance of structural growth stories in “new Russia”, cannot be underestimated, said Michael Levy, lead manager for the Baring Russia Fund.
63% of delegates at today’s Portfolio Adviser’s Expert Investor Emerging Markets event said they expect to increase their exposure to the asset class in the next year, up from 25% when the same question was asked in February.
Investing in the BRIC concept may seem outdated, while China’s stock market woes have caused concern, but there’s still plenty of reasons to be optimistic about emerging markets.
Turkey and Russia pose the biggest threats to long-term emerging market returns, according to Pictet Asset Management’s Luca Paolini.
Picking up consumer-orientated companies is the best way for investors to capitalise on emerging market GDP growth, says Franklin Templeton Investments’ Mark Mobius.
Global dividends fell the most in five years year-on-year in the three months to 31 March, according to research by Henderson Global Investors.
If the manager is freed from the benchmark, emerging markets offer many opportunities from a stock-picker’s perspective, particularly if headlines are negative, according to Ross Teverson, head of strategy for global emerging markets at Jupiter Asset Management.
With US valuations higher than they have been for many years and the QE-fuelled run in European assets, investors are once more turning to emerging markets, putting the BRIC economies back under the spotlight.
Hermes Investment Management has warned investors that the Russian markets resemble the military ceasefire with its neighbour Ukraine in that ‘being calm today does not preclude mayhem tomorrow’.